Sipchem expects share-swap merger with Sahara Petrochemicals in 2014

MOSCOW (MRC) -- Saudi International Petrochemical Co. (SIPCHEM) expects to sign a share-swap merger agreement with Sahara (SPC) Petrochemicals Co. in the first half of next year, seeking to create a company with about USD5 billion in market value, as per Bloomberg.

Saudi International Petrochemical, also known as Sipchem, will issue 0.685 new shares for every one of Sahara under the terms of the proposed merger, the companies said in a statement to the Saudi stock market. They signed a memorandum of understanding to start due diligence and continue the non-binding talks. Sipchem will issue 300.6 million new shares to Sahara shareholders.

The companies’ proposed merger comes as SABIC, the world’s biggest petrochemicals maker by market value, seeks investment opportunities in the U.S. State-run General Retirement Organization and Al Zamil Holding Group are shareholders in both Sipchem and Sahara, according to data compiled by Bloomberg.

"The combined business is expected to result in significant synergies related to operational efficiencies and the combined company would become a stronger platform for further growth in the long-term," according to the statement.

As MRC reported previously, in early June 2013, Saudi Arabia's Sahara Petrochemicals and Sipchem announced the beginning of initial talks on a potential merger. The Zamil Holding Company Group, one of the Kingdom's most prominent family businesses, is a major shareholder in both companies.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

MOSCOW (MRC) -- Czech downstream oil group Unipetrol (PKN Orlen's affiliate) has achieved an important milestone in the last days of November when the company reached over the border 5,000,000 tonnes of produced polypropylene (PP), reported the company on its site.

"We are the only producer of polypropylene in the Czech Republic and produce about 50 types of PP for a wide range of products. It can be found for example in nonwoven textile, which is used in production of baby diapers, in building industry or agriculture," explains Artur Pazdzior, Chief Executive of Unipetrol RPA. Polypropylene is also used in automotive industry, in production of toys, swimming pools, as well as for food packaging - different types of pots.

Polypropylene has been producing in Chempark Zaluzi for 38 years. The first 250 tons of the Czech PP with the trade name Mosten were produced on 27th October 1975. The original polypropylene unit was shut down in October 2002, one month before opening of new polypropylene unit, and was dismantled for scrap in 2004. New polypropylene unit has a higher performance, it produces up to 900 tonnes of PP every day.

Another type of polymer produced by Unipetrol RPA is polyethylene. The limit of 5 millions tonnes of produced high-density polyethylene (HDPE) Unipetrol RPA was achieved during November 2011, even though the company has been starting the production of polyethylene a year later than the production of polypropylene, in 1976.

As MRC wrote previously, Unipetrol expects petrochemicals to become the largest source of revenue for the company in 2013-2017. Unipetrol wants to use the favourable market conditions to reinforce its position on the petrochemical market and optimise its operations.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 3,700 people.
MRC

Imports of polycarbonate to the Russian market continued to show a steady downtrend. Imports of PC-granulate to Russia was 2,800 tonnes in November, down by 10% from the October's level.

Russia's export of polycarbonate in November reached record levels, having increased by 52% compared with the October's level to 3,600 tonnes.

Russia's November net exports (the difference between exports and imports) of PC-granulate was positive in the first time for the year , having reached 800 tonnes.

MRC

MOSCOW (MRC) -- Styron LLC, the global materials company and manufacturer of plastics, latex and rubber, has announced an increase in the selling price of acrylonitrile-butadiene-styrene (ABS) in the Americas, reported the company on its site.

Effective January 2, 2014, or as existing contract terms allow, prices of MAGNUM ABS resins will rise by USD0.04 USD/lb.

This price increase is in response to the escalation in key raw materials used in the manufacturing process of ABS and is in addition to all previously announced increases.

As MRC reported previously, in July 2013, Styron offered a complete portfolio of acrylonitrile butadiene styrene products under the MAGNUM ABS Resins brand name. Styron’s MAGNUM ABS resins use continuous mass polymerization technology, as opposed to an emulsion process. This ensures superior lot-to-lot consistency in properties and performance, low gel, and a superior natural whiteness.

The Styron ABS business has traditionally supported the automotive industry. Most recently Styron’s global ABS business has expanded to include non-automotive sectors as consumers seek a premium appearance in items such as equipment housings for medical devices, cabinetry for consumer electronics and home furnishings, opaque sheet and furniture.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’s technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD 5.5 billion in revenue in 2012, with 20 manufacturing sites around the world.
MRC